Palantir sues ex-employees for stealing source code to build rival AI firm backed by General Catalyst
Oct 31, 2025
Key Points
- Palantir sued two former employees for stealing source code and customer workflows to build rival AI firm Percepta, backed by General Catalyst, and violating non-compete agreements.
- Palantir's forensic evidence shows one employee slacking themselves a document, then opening it on a personal phone, suggesting deliberate data exfiltration.
- The lawsuit seeks to block defendants from using stolen materials and force data return, with observers noting Palantir's formidable litigation track record against federal government entities.
Summary
Palantir sued two former employees for violating non-compete agreements and stealing confidential data including source code and customer workflows to build a rival AI firm called Percepta, backed by General Catalyst.
Palantir tracked one employee slacking themselves a document and then opening it on their personal phone, building a forensic trail that suggests deliberate exfiltration. The lawsuit seeks to block the defendants from using the stolen materials and force return of the data.
The case is notable because Palantir's entire business is built on data analysis and intelligence work. Suing someone for data theft plays directly to its core competency. Palantir also has a track record of winning litigation against the federal government, which raises the stakes for the defendants.